452 fund ratings unchanged
Research house Standard & Poor’s (S&P) is keeping its eyes fixed to events surrounding the impending departure of 452 Capital’s management team, announcing 452 managed funds will have their ratings unchanged.
Colonial First State (CFS) 452 Australian share and geared Australian share strategies will maintain their ‘sell’ ratings, while CFS FirstChoice Australian share and geared boutique Australian share strategies remain ‘on hold’.
The decision follows CFS’s announcement it will replace the troubled boutique fund manager with Integrity Asset Management and its own CFS Global Asset Management (CFSGAM).
Integrity Investment Management is the replacement manager for the Australian share strategy, while CFSGAM core Australian equities team manages the geared Australian share strategy.
Integrity will also replace 452 as one of the five underlying managers in the CFS FirstChoice boutique and geared boutique Australian share strategies.
Colonial expects the transition to Integrity and CFSGAM to be completed within 30 days, advising S&P that a special distribution will be paid from the Australian share strategy.
The researcher will review the funds once the transition is completed.
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